Lombard v Biggs (Leave to Appeal) (858/2019) [2023] ZAECMKHC 9 (31 January 2023)
- Citation
- [2023] ZAECMKHC 9
- Status
- Judgment
- Jurisdiction
- South Africa
- Court
- Eastern Cape High Court, Makhanda
- Panel
- N G Beshe
- Case number
- 858/2019
More details
- Court
- Eastern Cape High Court, Makhanda
- Panel
- N G Beshe
- Case number
- 858/2019
On this page
Professional case brief
Research organized from the available case record
01
Holding and result
The court found that the agreement between the parties did not constitute an incidental credit agreement as defined by the National Credit Act. The evidence showed that there was no discussion regarding interest at the time the agreement was concluded, and the relevant clause in Annexure B was incomplete. The issue of interest only arose months after the agreed payment date, and there was no evidence to contradict the respondent's testimony. The court held that the applicant's reliance on Annexure B and the pleadings was misplaced, and there were no reasonable prospects that another court would reach a different conclusion. Accordingly, the application for leave to appeal was dismissed with costs.
Court disposition
Application for leave to appeal dismissed with costs.
Orders
- The application for leave to appeal is dismissed with costs.
02
Material facts
Parties
Wentzel Lombard
Applicant Counsel: S. H. Cole SCWilliam Biggs
Respondent Counsel: D. H. De la Harpe SCAmounts and remedies
- Amount Ordered to Be Paid (original Judgment): ZAR 726,485.82
03
Procedural history
Posture
Leave to Appeal / Application for Leave to Appeal Following Judgment
04
Questions and positions
Legal issues
- 01
Whether the agreement between the parties constituted an incidental credit agreement under the National Credit Act.
- 02
Whether the plaintiff was bound by his pleadings regarding the nature of the agreement.
- 03
Whether the document marked Annexure B proved the existence of an incidental credit agreement.
Party arguments
- Applicant
- The applicant contended that the plaintiff was bound by his pleadings and that the agreement in question, as evidenced by Annexure B, was an incidental credit agreement. The applicant argued that the authenticity of Annexure B was confirmed by the plaintiff in a Rule 37 minute and that the clause regarding interest supported the existence of an incidental credit agreement. The applicant maintained that the court misdirected itself by not accepting this evidence and by failing to recognize the legal consequences flowing from the pleadings and the document.
- Respondent
- The respondent argued that there was no discussion regarding interest at any stage prior to the agreed payment date and that the agreement did not constitute an incidental credit agreement under the National Credit Act. The respondent maintained that the clause in Annexure B was incomplete and that the issue of interest only arose months after the initial agreement, specifically in November when the applicant failed to pay. The respondent asserted that the evidence did not support the applicant's contention and that the court's original findings were correct.
05
Court’s reasoning
Legal principles
- 01
National Credit Act 32 of 2005
An agreement does not constitute an incidental credit agreement under the National Credit Act unless the payment of interest is a term agreed upon at the time of contracting.
- 02
Rule 37 Uniform Rules of Court
A party is bound by its pleadings, and the case must be determined on the pleadings and evidence presented.
06
Ratio, limits and disposition
Ratio decidendi
The court found that the agreement between the parties did not constitute an incidental credit agreement as defined by the National Credit Act. The evidence showed that there was no discussion regarding interest at the time the agreement was concluded, and the relevant clause in Annexure B was incomplete. The issue of interest only arose months after the agreed payment date, and there was no evidence to contradict the respondent's testimony. The court held that the applicant's reliance on Annexure B and the pleadings was misplaced, and there were no reasonable prospects that another court would reach a different conclusion. Accordingly, the application for leave to appeal was dismissed with costs.
Obiter and limits
- The spaces left uncompleted in the clause relating to interest in Annexure B support the finding that no agreement on interest was reached at the time of contracting.
- The discussion regarding interest only arose after the applicant failed to pay on the agreed date, which does not satisfy the requirements of an incidental credit agreement under the National Credit Act.
Court disposition
Application for leave to appeal dismissed with costs.
- The application for leave to appeal is dismissed with costs.
Source and reliance status
Eastern Cape High Court, Makhanda
This page organises the available record for research. Confirm quotations, current status, and subsequent treatment against the official source before relying on the case.
Judgment reading view
Judgment text
The complete available source text.
Eastern Cape High Court, Makhanda
Judgment
IN THE HIGH COURT OF
SOUTH AFRICA
(EASTERN CAPE DIVISION, MAKHANDA)
Case No: 858/2019
In the matter between:
WENTZEL
LOMBARD
Defendant / Applicant
And
WILLIAM
BIGGS
Plaintiff / Respondent
JUDGMENT –
APPLICATION FOR LEAVE TO APPEAL
BESHE J:
[1] In a judgment that was delivered on 12 May 2022, I found in favour of the respondent. The applicant was ordered to pay to the respondent a sum of R726 485.82 together with interest thereon. The applicant is now seeking leave to appeal against the said judgment.
[2] The parties will be referred to as they were during the trial.
[3] In my judgment I found inter alia, that even though according to defendant’s pleaded case, Cape Mohair and Wool is the entity that bought the goats in question and that he did not conclude an agreement with the plaintiff, that defendant did conclude the agreement in question with the plaintiff.
I also made a finding that the agreement concerned was, even though the payment was deferred to a later date, did not constitute an incidental credit agreement as provided for in the National Credit Act.[1] The upshot of this finding was that the plaintiff was not obliged to comply with Sections 86 (10), 129 and or 130 of the said act.
[4] The application for leave to appeal is premised mainly on the ground that the plaintiff having been bound by his pleadings, or in another words his case having had to be determined on his pleadings, I misdirected myself in not taking into account that the document marked Annexure B is proof that the agreement in question was an incidental credit agreement. And that plaintiff’s pleaded case is grounded Annexure B the authenticity of which was confirmed by the plaintiff in a Rule 37 minute. I had taken the liberty to reproduce Annexure B in my judgment, I do not intend reproducing the whole document again.
[5] For the assertion that the agreement concerned was incidental credit agreement, reliance is placed on the part of the document which reads as follows:
“Rente op onbetaalde bedrae, na die ooreengekomde datum van betaling sal gehef word en dan teen ‘n koers deur Verkoper verkie, rente maandelikse saamgestel. Geen rente sal voor … … … … … op die uitstaande bedrag gehef word nie.”
[6] In his evidence, plaintiff stated that at no stage did he discuss the question of interest with defendant. In my understanding, that he will be required to pay interest should payment not be made on the agreed date. In the absence of any evidence to gainsay plaintiff’s evidence in this regard, I was satisfied on a balance of probabilities that there was never a discussion about interest should payment not be forthcoming on the agreed date being the 15 May 2018. And that the discussion or suggestion came months later when defendant failed to make good on his promise to pay on dates subsequent to 15 May 2018. Only in November was this discussion had. This in my view is also borne out by the spaces that were left uncompleted in the clause in question relating to the payment of interest (Annexure B supra).
[7] I remain unpersuaded that there are reasonable prospects of another court finding that the agreement in question was an incidental credit agreement.
[8] Accordingly, the application for leave to appeal is dismissed with costs.
N G BESHE
JUDGE
OF THE HIGH COURT
APPEARANCES
For the Defendant/Applicant :Adv: S. H. Cole SC
Instructed by
: NOLTE
SMIT ATTORNEY
115A High Street
GRAHAMSTOWN
Ref: Mr. Frans Smit / Michelle
Tel.: 046 – 622 7209
For the Plaintiff /Respondent : Adv: D. H. De la Harpe SC
Instructed by
:
NETTELTONS ATTORNEYS
118A High Street
Ref: Mr. Hart / Liza
Tel.: 046 – 622 7149
Date Heard :
25 January 2023
Date Reserved
: 25 January 2023
Date Delivered
: 31 January 2023
[1] Act number 32 of 2005.
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